NHPC Limited (NHPC) AI Stock Analysis

• Market Cap: ₹828.11B
• Dividend Yield: 2.44%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.24
• Revenue Growth: 15.72%
• EPS Growth: 6.45%
• Country: IN
• Employees: 4,461
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 1.21
• Shares Outstanding: 10,045,034,000
• 10 Day Avg. Volume: 870,126
• 30 Day Avg. Volume: 1,122,519
• PEG Ratio: -1.67
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 7.96
• P/FCF Ratio: -21.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹88.00 ▲(5.24% Upside)

NHPC Limited's overall stock score is driven by strong financial performance, despite challenges in cash flow management and rising leverage. Technical analysis indicates potential bearish momentum, while the valuation suggests the stock may be overvalued. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Gross Profit Margin

A consistently high gross profit margin indicates effective cost management, which is crucial for maintaining profitability and competitive advantage in the long term.

Operational Efficiency

Improved operational efficiency, as shown by rising EBIT margins, suggests effective management and cost control, enhancing long-term profitability and competitiveness.

Stable Revenue Stream

Long-term power purchase agreements provide predictable revenue, reducing financial volatility and supporting sustained business operations.

Negative Factors

Rising Debt Levels

Increasing leverage can heighten financial risk, potentially impacting the company's ability to invest in growth opportunities and maintain financial stability.

Declining Net Profit Margin

A declining net profit margin may indicate rising costs or pricing pressures, which could undermine profitability and require strategic adjustments to sustain earnings.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, limiting the company's ability to fund operations, invest in growth, or return capital to shareholders.

NHPC Limited Business Overview & Revenue Model

Company Description

NHPC Limited, together with its subsidiaries, generates and sells electricity in India. The company generates electricity through hydro, wind, and solar power stations. It owns and operates 24 power stations with an installed capacity of 7071.2 megawatts. The company also offers consultancy services in the areas of river basin studies; detailed survey and investigations; cost engineering; environmental impact assessment and environmental management plans; project reports, clearances, and investment decision; tendering for civil / mechanical /electrical works; contract management and assistance in procurement; equipment planning and management; construction planning and management; quality control and assurance; operation and maintenance; renovation, modernization, and uprating of hydropower stations; hydro power, tidal, wind, and geothermal development; lenders independent engineers/ review consultant/ techno commercial advisory services; projects execution; training / human resources development; and information technology and communication. In addition, it provides project management and construction contract services, as well as trades in power. The company sells electricity to bulk customers that include electricity utilities owned by state governments/private distribution companies. The company was formerly known as National Hydroelectric Power Corporation Ltd. NHPC Limited was incorporated in 1975 and is based in Faridabad, India.

How the Company Makes Money

NHPC Limited generates revenue primarily through the sale of electricity produced by its hydroelectric power projects. The company operates numerous hydropower stations across India, which contribute significantly to its revenue stream. Additionally, NHPC earns income from the sale of renewable energy certificates and carbon credits, as well as from its ventures in solar and wind energy projects. The company often enters into long-term power purchase agreements (PPAs) with state electricity boards and other utilities, ensuring a stable and predictable revenue flow. Key factors contributing to NHPC's earnings include government support for renewable energy initiatives, strategic location of its hydroelectric projects, and its expertise in project management and execution in the power sector.

NHPC Limited Financial Statement Overview

Summary

NHPC Limited demonstrates strong gross profitability and operational efficiency, but faces challenges with declining net margins and inconsistent revenue growth. The balance sheet remains robust with significant equity, though rising debt levels could increase financial risk. Cash flow management is a concern, with negative free cash flow raising liquidity questions. Overall, the company is well-positioned but must address its leverage and cash flow issues to enhance financial stability.

Income Statement

The company exhibits a solid gross profit margin consistently above 90%, indicating effective cost management. However, net profit margin has been declining, dropping from 36.3% in 2023 to 29.0% in 2025. Revenue growth has been inconsistent, with a 7.2% increase in 2024, followed by a 2.6% decrease in 2025. The EBIT margin has increased over the years, showcasing improved operational efficiency, but the EBITDA margin has shown some volatility.

Balance Sheet

NHPC Limited maintains a strong equity base, with an equity ratio of 38.6% in 2025. The debt-to-equity ratio has increased, reaching 1.05 in 2025, indicating rising leverage which could pose risks. Return on equity has remained stable around 7.6%, reflecting steady profitability relative to equity.

Cash Flow

The company faces challenges in free cash flow management, as evidenced by the significant negative free cash flow in 2025. The operating cash flow to net income ratio is strong, indicating healthy cash generation. However, the free cash flow to net income ratio has turned negative, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	108.99B	103.80B	84.61B	93.53B	82.79B	84.34B
Gross Profit	93.57B	90.79B	88.14B	55.32B	43.79B	82.60B
EBITDA	66.36B	59.29B	62.51B	68.62B	60.89B	61.96B
Net Income	30.59B	30.07B	35.96B	39.03B	35.24B	32.72B
Balance Sheet
Total Assets	0.00	1.03T	932.95B	890.86B	772.85B	731.57B
Cash, Cash Equivalents and Short-Term Investments	24.88B	27.51B	36.35B	37.87B	17.28B	21.44B
Total Debt	0.00	415.74B	345.78B	315.57B	260.96B	253.82B
Total Liabilities	-451.63B	575.15B	494.03B	443.73B	396.89B	372.38B
Stockholders Equity	451.63B	396.68B	387.02B	368.99B	349.21B	330.90B
Cash Flow
Free Cash Flow	0.00	-38.25B	-596.40M	-2.68B	14.57B	30.91B
Operating Cash Flow	0.00	50.26B	69.38B	46.92B	64.72B	50.73B
Investing Cash Flow	0.00	-75.50B	-59.68B	-42.46B	-49.66B	-15.30B
Financing Cash Flow	0.00	19.04B	-5.81B	-7.96B	-6.38B	-31.38B

NHPC Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NHPC, the sentiment is Positive. The current price of 83.62 is above the 20-day moving average (MA) of 79.12, above the 50-day MA of 79.46, and above the 200-day MA of 83.31, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NHPC.

NHPC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹665.53B	22.14	―	1.48%	-1.26%	27.83%
POWERGRID	72 Outperform	₹2.40T	15.82	―	3.37%	0.80%	-3.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NHPC	65 Neutral	₹828.11B	26.11	―	2.44%	15.72%	6.45%
TATAPOWER	65 Neutral	₹1.17T	28.77	―	0.59%	4.06%	8.22%
GVT&D	59 Neutral	₹742.62B	80.73	―	0.10%	33.42%	132.99%
SJVN	55 Neutral	₹307.00B	55.13	―	1.94%	6.92%	-44.22%

NHPC Limited Corporate Events

NHPC Commissions Second 250 MW Unit at 2,000 MW Subansiri Lower Hydro Project

NHPC Limited has declared the commercial operation of Unit 2, a 250 MW unit, of its 2,000 MW Subansiri Lower Hydroelectric Project located in Assam and Arunachal Pradesh, following the successful completion of trial runs. This milestone incrementally adds to NHPC’s operational capacity at one of India’s key hydro projects, enhancing supply potential in the northeastern region, while the company indicated that the commissioning of the remaining units of the project will be announced in due course, signaling further staged capacity addition ahead.

NHPC Limited Transfers Equity Shares to IEPF Authority

NHPC Limited announced the publication of a notice to its equity shareholders regarding the transfer of equity shares to the Investor Education and Protection Fund (IEPF) Authority. This move, in compliance with SEBI regulations, was communicated through newspaper advertisements in Business Standard editions. The transfer of shares to the IEPF Authority is a regulatory requirement that ensures unclaimed dividends and shares are managed appropriately, reflecting NHPC’s adherence to statutory obligations and potentially impacting shareholder equity management.

NHPC Limited to Participate in UBS India Summit 2025

NHPC Limited announced its participation in the UBS India Summit 2025, an investor conference in Mumbai, where it will engage with analysts and investors. This participation underscores NHPC’s commitment to maintaining transparency with stakeholders and enhancing its visibility in the investment community, potentially influencing its market positioning and investor relations.

NHPC Advances Subansiri Lower Hydroelectric Project with Reservoir Filling

NHPC Limited has announced that it has received permission from the National Dam Safety Authority to begin filling the reservoir for its Subansiri Lower Hydroelectric Project, which has a capacity of 2000 MW. Four generating units, each with a capacity of 250 MW, have been prepared for commissioning within the current fiscal year 2025-26, marking a significant step in the project’s development and enhancing NHPC’s position in the renewable energy sector.